Who Pays for Staging a House?

Home staging involves preparing a property for sale by enhancing its visual appeal and creating an inviting atmosphere for potential buyers. This process aims to highlight a home’s best features, allowing prospective purchasers to envision themselves living in the space. Understanding the financial arrangements for home staging can help sellers make informed decisions during the sales process.

The Seller’s Financial Responsibility

The primary financial responsibility for home staging rests with the seller. Staging is a strategic investment made by the homeowner to enhance marketability. This investment can attract buyer interest, potentially leading to a faster sale or a higher selling price. Studies indicate that staged homes often spend less time on the market and can sell for a higher value compared to unstaged properties.

The Internal Revenue Service (IRS) often considers home staging costs as legitimate selling expenses. These expenses can be tax-deductible if solely for the purpose of selling the home and treated as an advertising cost. Such costs are subtracted from sale proceeds, which can decrease total realized profit and any capital gains tax obligation.

Structuring Staging Costs

Sellers incur staging costs through various mechanisms. Hiring professional home stagers is a common option, with initial consultations costing between $150 and $600. These professionals assess the property and provide recommendations or execute the staging plan. Project-based fees for professional staging can range from $800 to $1,000, not including furniture rentals.

Renting furniture and decor is an expense, especially for vacant properties, often costing $500 to $600 per room per month. Overall staging costs can range from $837 to $2,924, with an average around $1,844, though larger or luxury homes may incur expenses ranging from $2,000 to over $10,000. For “Do It Yourself” (DIY) sellers, costs involve decluttering supplies, minor repairs, painting, and cleaning services. Real estate agents may offer staging advice or minor decor items, absorbed within their commission.

Varied Staging Approaches

The specific staging approach significantly influences the overall cost. Staging a vacant home requires a substantial investment, necessitating furniture and decor rentals to fill empty spaces. This furnishing helps buyers visualize the function and scale of each room. Costs for vacant staging are higher due to furniture rental fees, movers, and design services.

In contrast, staging an occupied home involves working with existing furniture, decluttering, rearranging, and adding accent pieces. This approach is more affordable as it leverages existing items and optimizes the present layout. Sellers can choose between “full staging,” involving every room, and “partial staging,” concentrating on key areas. Partial staging reduces costs, while full staging creates a cohesive presentation.